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Does a Shutdown Impact Your Investing Decisions?

Tracey Ryniec

The deadline to pass a spending bill to avert a government shutdown looms on Tuesday.

Here's where the situation stands:

The Senate is voting on the Continuing Resolution today (Friday). It will strip out the language that defunds Obamacare and send a "clean" bill back to the House.

Possible scenarios to play out over the weekend:

Scenario 1:

It is thought the House, over the weekend, may attach the Obamacare defunding back to the bill, or other amendments, and send it back to the Senate. By this point, it will be Sunday or even Monday which procedurally won't leave enough time to get the Continuing Resolution passed by the deadline because the Senate will again strip out whatever is attached and send it back. The government will shutdown.

Scenario 2:

The House refuses to pass a clean bill altogether, and doesn't send it back to the Senate with any amendments, so the government shuts down while negotiations continue.

Scenario 3:

Speaker Boehner abandons the conservative wing of the party and colludes with the Democrats to get a clean version of the bill passed by the deadline.

Scenario 4:

The House passes a clean temporary Continuing Resolution that lasts a week which will allow the sides to negotiate further without shutting down the government.

There are probably other scenarios that could happen as well but these are the main possibilities.

Politico is reporting that Speaker Boehner and Majority Leader Reid have not spoken to each other in the last 24 hours.

Stocks have been jittery all week as Wall Street has been closely monitoring events in Washington.

Does a possible shutdown impact your investing decisions?

Or are you staying the course?


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